US stocks end higher on relief rally after last week’s sharp decline

By Gokhan Ergocun

ISTANBUL (AA) - US stocks ended higher Tuesday on a relief rally as traders returned from a long weekend and following weeks of heavy selling.

While markets were closed Monday due to a federal holiday, stock exchanges dropped sharply last week amid recession concerns.

After the Federal Reserve raised its benchmark interest rate by 75 basis points last Wednesday to combat inflation, recession worries increased, but remarks by officials assuaged investor concerns.

James Bullard, the head of the Federal Reserve Bank of St. Louis, said the central bank could increase interest rates in July but the US economy will not see a recession.

On Tuesday, White House spokeswoman Karine Jean-Pierre also announced that the government does not currently foresee a recession in the US economy.

The Dow Jones Industrial Average gained 641.47 points, or 2.15%, to close at 30,530.25.

The S&P 500 gained 89.95 points, or 2.45%, to end the day at 3,764.79.

The Nasdaq was up by 270.95 points, or 2.51%, to finish at 11,069.30.

The VIX volatility index, also known as the fear index, was down 2.71% at 30.19 as of 5.14 p.m. Eastern Time (2114GMT).

The dollar index dropped 0.29% to 104.18 and the 10-year US Treasury yield rose 1.23% to 3.279%.

Precious metals were mixed as gold fell 0.31% to $1,834.90 per ounce and silver was up 0.41% at $21.67.

Global benchmark Brent crude was trading at $111.84 a barrel for a 0.03% decline while US benchmark West Texas Intermediate crude was at $109.65 – a 1.54% increase.